Reverse Logistics and

Green Supply Chains

Session 10

Indian Institute of ManagementLucknow

Pressure on Companies to go Greener

Government pressureAvailability of

alternatives

CSRCompanies see it as the primary issue likely to

impact upon their corporate reputation

Consumer pressureCompanies have begun

competing with each other to demonstrate to consumers their

commitment to the environment

Impact of negative publicity and boycotts on

brand value

International standards and

regulations

Companies are increasingly signing up to greener environmental standards

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CompetitivenessSustainable

DevelopmentEnvironmental Requirements

Global shift: Towards Green Based Economy

Developments Model from Thailand

Green Based Economy

Demand for Green Products

End of Life Cycle

Impact

Economic Restructure

Environmentally Sound Management: ESM

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Increasing Use Efficiency

Bio-Products/Material

End of Life Cycle

Reuse/Recycling/

Repair/Refurbishment

/Recovery

Prevention

Sustainable Development and Competitive Advantage

Source: www.thaieei.comLSCM

Green Supply Chain Management

Integrating environmental thinking into supply chain

management, including product design, material management, including product design, material

sourcing and selection, manufacturing processes,

delivery of the final product to the consumer as well

as end-of-life management of the product after its

useful life

- Srivastava, 2007

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Interactions between Various Stakeholders in GrSCM

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GrSCM Drivers

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Process Involved in Green SCM

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Green Initiatives

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Green Initiatives in Different SC Phases

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Carbone and Moatti, 2008LSCM

What is Reverse Logistics? Logistics (Forward)Process of planning, implementing and controlling the efficient,

cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of origin finished goods and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements

- Council of Logistics, 1988

Reverse LogisticsProcess of planning, implementing and controlling the efficient, Process of planning, implementing and controlling the efficient,

cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal

- Rogers and Tibben-Lembke7/14/2015 10LSCM

Reverse Logistics Activities

The advantage to using reworked parts is felt through cost saving

1) Repair2) Refurbishing3) Remanufacturing

Make the product reusable for its intended

use or purpose

Retrieving reusable parts from old or broken products

4) Cannibalization

Reusing parts of products for other/ different purpose

5) Recycling

3) Remanufacturing

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End-of-lifephone

disposal

Phonedemand

& use

Primary materials

productionComponentsmanufacture

Final phone

assembly

Cell phone Take-back Entrepreneur

ComponentReuse

Phone refurbishment

End-of-life phone

collection

Inspection &

sortingComponent

market

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Metalsrecycling

collection

Metalsmarket

sorting

Source: Greener SolutionsLSCM

Remanufacturing Processes - Alternators

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Shin-Etsu Denso Co. Ltd

RFID-based Reverse Logistics System

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Towards Greener Supply Chain Models

TransportCarrier

Selection

TransportCarrier

Selection

AGreenerSupplyChain

AGreenerSupplyChain

NetworkDistributionOptimization

TransportMode

Optimization

TransportMode

Optimization

EquipmentUtilization

Improvement

EquipmentUtilization

Improvement

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Discussion of Some Polycopy Papers

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Approach to Sustainable Production & Consumption

GovernmentFirmsGreen Productivity Green PurchasingUniversities

WEEE

CII/ FICCIConsumersGreen Products

International

Local/Domestic

Green Supply Chain

LCA Experts LCA Studies LCA Roadmap LCA Database EcoDesign/ DfE Green Camps Green Operations Industries

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E & E Textile Auto etc.

WEEERoHSREACHIPPELVEcoMark-Labeletc.

SpecializedInstitutes CSE, TERI, etc.

Green Operations Green Usage Green Waste Mgmt

Industries

LSCM